NFA Dead Forex Firms Walking


98 5
They are both stuck in bankruptcy with creditors (and traders) waiting in a line that stretches around the block. Let that be a lesson to anyone who owns shares in General Motors or has an account with an unlicensed Swiss Broker.

So you suggest that there are Swiss brokers who are licensed? Back in a days I was trying to set up forex company in Switzerland - I do not remember any license was needed there. They had "anti-laundering" agencies but no 'serious' market regulators.

forex scholar

Active member
239 9
Top Forex Dealers by Volume

Michael Greenberg at Forex Magnates has released an interesting new survey on forex broker trading volumes (in the billions).

Top retail Forex brokers report well over $100B in daily traded volume | Forex Magnates

Monthly Trading Volume

1. FXCM $560,000,000,000
2. Oanda $338,000,000,000
3. Saxo Bank $225,000,000,000
4. Gain $200,000,000,000
5. GFT $175,000,000,000
6. ACM $150,000,000,000
7. PFG $85,000,000,000
8. IBFX $80,000,000,000
9. Alpari $60,000,000,000
10. IG Index $60,000,000,000

This is a useful tool for determining a broker’s size and stability (in addition to the net capital numbers.)

The following firms have net capital below $20 million
Easy Forex $15,552,000
Ikkon Royal $16,423,000
Alpari $16,557,000
MB Trading $17,031,000
Advanced Markets $19,686,000

The following firms have net capital above $20 million
Forex Club $21,354,000
CMS Forex $29,360,000
PFG $30,444,000
Interbank FX $38,393,000
FX Solutions $45,032,000
GFT Forex $87,169,000
Gain Capital $95,879,000
FXCM $113,463,000
Oanda $161,723,000

forex scholar

Active member
239 9
April Net Capital Report

The CFTC has just released their latest net capital figures. These appear to be the finalists who have survived the net capital guillotine:

Financial Data for FCMs

The following firms have net capital below $20 million

Easy Forex $15,549,000
Ikkon Royal $16,355,000
MB Trading $17,100,000
Advanced Markets $19,796,000

The following firms have net capital above $20 million

Alpari $20,975,000
Forex Club $21,795,000
CMS Forex $29,649,000
Interbank FX $36,507,000
PFG $36,843,000
FX Solutions $41,546,000
FXCM $60,472,000
GFT Forex $80,693,000
Gain Capital $90,801,000
Oanda $159,739,000

forex scholar

Active member
239 9
Forex Dealer Dead Pool Alumnus Busted for Fraud

Former SNC Investment CEO Peter Son has been hauled into court by federal regulators a year after he disappeared during an NFA investigation into missing funds covered on this thread back in October of 2008:

NFA Forex Dealer Dead Pool - Page 21 - Forex Forum -

The feds are now confirming that Peter Son was running an $80 million ponzi scheme:

Among the SEC’s findings:

Son used investor funds to pay the mortgage on his $2.6 million home in Blackhawk, a gated community in Danville, California, his homeowner’s association dues, and his country club dues;

Son used SNCA investor funds to pay his wife a salary of $3,000 per month even though she did no work for SNCA;

Son and Chung Transferred SNCA investor funds to SNCI to help it meet regulatory requirements that it maintain certain levels of capital; and

Son and Chung transferred SNCA investor funds to SNCI’s Korean bank account, to Son’s Korean bank account, and to the Korean bank account of a Korean company under Chung’s control.

After covering these poorly capitalized firms for years I’m not the least bit surprised that SNC illegally used customer funds to meet their capital requirements back when they were still registered with the NFA. That’s why cap requirements had to be raised and thankfully the worst of these brokers are long gone in the U.S.

But let this be a lesson to the trading public to avoid opening an account with any poorly capitalized firm, or a firm that is not regulated and does not disclose their financials.

forex scholar

Active member
239 9
IBFX Plays Chicken with FIFO Deadline

On July 31 the NFA’s FIFO order comes into effect. As of this moment the MT4 trading platform is not compliant with this rule and there is no guarantee that it will become compliant come the July deadline.

For firms that heavily rely on MT4 this is bad news. FXDD, which uses MT4 but are not regulated and therefore under no obligation to comply with NFA rules at present, are taking advantage of their unregulated status by telling NFA to get bent. As an unregulated firm they can do what they like (then again the whole issue of FXDD being unregulated is a serious red flag in and of itself. After all, the feds could basically raid the firm at anytime and shut them down overnight.)

But IBFX is (unfortunately for them) regulated solely by the NFA and their only trading platform at present is MT4. What is IBFX to do?

IBFX’s CEO seems confident and in “nothing to see here style” stated the following in an email to customers:

Forex Factory - View Single Post - All USA FX dealers may not be able to support MT4

To our valued clients,

As you may know, the National Futures Association (NFA), has implemented new First-in, First-out (FIFO) requirements that will be in effect as of July 31, 2009. We at Interbank FX have been working hard on a solution and are confident that our traders will be able to use our MetaTrader 4 platform with little or no interruption. They will also continue to be able to use their MT4 expert advisors.

The NFA is striving to ensure the highest levels of integrity from all market participants and their intermediaries. We want to assure you that Interbank FX strives to be 100% compliant with the NFA.

We are currently working on some informational and instructional videos regarding the FIFO requirements and our solution, however most of you will be able to continue trading without any impact to your platform or strategies. In our effort to provide the best solution for your trading, you will be fully advised prior to any proposed changes.

We thank you for your continued support and wish you the best of luck with your trading.

Best regards,

Todd Crosland
and the Interbank FX Team

That all sounds reassuring, but what if something isn’t worked out by July 31st?

Meta Quotes is under no obligation to jump through hoops for IBFX and the NFA. And if Meta Quotes chooses not to (or is technically unable to) make any major changes to MT4 then IBFX is in big, big trouble as they will be stuck with a platform that is basically illegal.

Would IBFX close? Would they halt trading? Would the NFA and CFTC step in? Would IBFX be granted an extension by regulators? Can they get a UK license in time? Can they roll out a new trading platform in time?

Finally, how on earth did IBFX allow itself to be put in such a vulnerable position where their entire company is at the mercy of an independent third party based in Russia?

These should be mandatory questions that every current and potential customer of IBFX should be asking.

forex scholar

Active member
239 9
May Net Capital Report

The CFTC has just released their latest net capital figures. This is the current state of the U.S. retail fx industry:

Financial Data for FCMs

Advanced Markets $20,722,000
Easy Forex $20,928,000
Ikkon Royal $21,247,000
MB Trading $21,360,000
Alpari $22,312,000
Forex Club $25,427,000
CMS Forex $29,788,000
Interbank FX $35,611,000
PFG $36,465,000
FX Solutions $48,262,000
FXCM $63,999,000
GFT Forex $79,368,000
Gain Capital $98,125,000
Oanda $159,062,000


Junior member
11 0
I agree that it is so important to be with a broker that you can feel confident with.
I work at CMS and I am happy that we are one of the better brokers out there. There are so many things to consider when choosing a broker that you can be confident with. At CMS,

- We do not take positions against our clients (referred in the industry as B-book, so we do not win when our clients lose),
- We have no dealing or trading floors, we are a price aggregator and give you the best bid and offer price from the liquidity providers (banks),
- We have some of the strictest KYC policies in the industry
- Our clients funds are kept in segregated funds and because we do not trade against you nor do we speculate ourselves so we DO NOT use our clients' money to trade with!

This is why we've been so successful.

Please message me if you want any information
AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock